As the world is beginning a new economic cycle, it will undoubtedly impact the job market. And while the business is considering the right strategies for the near future, the recruiters are preparing themselves for new challenges and the ways to deal with them.
As bad economic news seems to appear daily, we don't know what the future holds except that changes are inevitable. And, entering the uncharted waters, we can no longer abide by the previous rules.
Although the big companies like Meta and Netflix freeze their hirings, and after the wave of layoffs at some companies like Robinhood, Cameo, Meta, it doesn't necessarily mean that the tech talent job market will immediately diminish. Even in the tightest times — and we're not there yet — there's always a high demand for the best talents. Besides, there are still fields like engineering and cybersecurity, where large and small tech companies will still struggle to find talent regardless of the macroeconomic context.
Ready. Steady. Hire!
This crisis can be a great opportunity to engage more talent for their open roles for companies with their margin of safety and are willing to continue hiring. Even so, they will have to shake the bushes to engage tech talents and struggle to retain them. But to emerge from the crisis and be on top, business needs to make some shifts just now.
While you're preparing your plan on how to continue to attract, hire and retain the talents that add value daily as recruitment competition grows more fierce, we've prepared some tips for you.
Upgrade Your Recruitment Process
Update your recruiting process – make it structured, consistent, and agile simultaneously. As the constant changes are the main challenge – there are new business roles and positions, employees are reprioritizing their demands, and markets are restructuring and transforming – you need to make the process as adaptive as possible and constantly customize your pitches to candidates.
A structured and consistent recruiting flow will help you avoid the extra moves when finding and attracting talent. Be prepared to learn by doing and ensure that the team is constantly sharing the experience. Last but not least, keep it simple.
Putting People First
Great products and services are created by people, not by companies. The company’s mission is to find and engage these talents. That is possible only if you have a strong culture of empathy and well-being as well as if you cultivate a supportive atmosphere within the team.
A culture of empathy and well-being means knowing what is most important to your people. Do they prefer flexible hours or being part-time? What reskilling or upskilling opportunities are they looking for? Which mental health benefits do they need?
It seems that increasingly more companies are choosing flexibility for their employees. And we will still have to see what the four-day workweek pilot just launched in the UK will bring to the table when employees are expected to follow the “100:80:100” model - 100% of the pay for 80% of the time in exchange for a commitment to maintaining at least 100% productivity.
So, take care of your people and be ready to offer them freedom and flexibility to expect the maximum output in exchange.
Opportunity to Grow Together
Talents do not choose the company just for the economic benefits. They choose the best opportunity to develop and grow together. So, to hire the talent, you have to make them an offer they cannot refuse. This one is possible by offering an interesting project, a cool team, and an outstanding environment for them to work in.
As the goal is not only to attract and hire but also to retain the talents and make sure that they will stay with your company over the long term, you have to be creative.
According to the McKinsey research, businesses are becoming increasingly more creative in their human capital investments as they learned from COVID-19 that employees had changed priorities in favour of a better work-life balance, which is unlikely to change whatever the economic conditions are. While some companies are partnering with ed-tech platforms and universities to train their employees in skills that complement automation getting creative to build the workforce they need, the other companies refocused on hiring based on skills rather than educational degrees. Some companies use remote work to broaden recruiting efforts, while others use the “return to work” as a cultural reset button.
That is why it may be a more suitable time to take a chance and focus on that long-term horizon when you can get that opportunity to grow and have an impact.
Resource Smart vs Resource Hard
Move quickly and aptly. Customize your pitches to candidates and be the first to reach them – as, if you are interested in hiring someone, there is a high probability that someone else is too. That is the moment when you must have all your strengths – proven opportunity to develop and grow together, outstanding atmosphere and a sustainable business – prepared and ready to argue.
If you get an interested candidate, move fast and show them that you are interested – be deliberate about how you approach and create that great communication experience. Find out what is important to them first – be a great listener, so you can use those insights to tailor the pitch and help close the deal later. To stay on their radar and throughout the process, those touch points will also help you understand how they feel about the opportunity.
A new economic cycle will undoubtedly impact the job market. The companies which have their margin of safety and are willing to continue hiring, and this crisis can be a great opportunity to engage more talent for their open roles. However, to make it real, you have to prepare now.
For hiring strong talents – to find and hold – first, ensure your company can offer a stable environment that would give them opportunities to grow. Earlier-stage companies will have to convince potential employees that they will not be out of business in the following year. And then the next move would be to offer them an excellent proposal.
To emerge through the crisis, you must invest in the earliest hires just now. And to hire and retain talent, you must run a good company and plan to attract and engage these talents. These are the things you should do right now:
- Update your recruiting process to this challenging context – make it structured and consistent; keep it simple.
- Take care of your people – offer them freedom and flexibility to expect the maximum output in exchange.
- Nurture a strong corporate culture and invest in it – it is essential to focus on engaging the best talents in the team and ensure those employees stay with the company over the long term.
- Source smarter and not harder – customize your pitches to candidates, be the first to reach them, and create that great communication experience.
As the economic environment changes quickly, it also requires a mindset shift. It is evident that the market will have to switch from an abundance “bull” mindset to a scarcity “bear” one. Businesses will mostly change their recruiting strategy and cut the HR budgets: freeze active hirings (which is happening already), review total compensation programmes, streamline the processes, and delegate the recruiting to agencies.
Just one more thing to remember. Even though the market involves uncertainty, downturns, and turnovers, it still functions cyclically. There will be those who are forged in these most challenging times, and such businesses will be rewarded with increased market share and the strongest team at the finish line. Now is the right time to be one of them!